While gold miners were succumbing to pressure after bond yields in the United States surged higher, 2 Gold stocks bucked the trend.
 

Gold Road Resources Ltd

Gruyere Gold Project construction is on schedule and budget:Gold Road Resources Ltd.’s (ASX: GOR) Gruyere Gold Project (50:50 Joint Venture) has been said to be on schedule (with 72% construction already complete) for first gold production expected at the end of the first quarter of 2019. The costs incurred to date by GOR are also in line with the budgeted overall Project Capital of $532 million. The construction of the mining infrastructure is expected to commence in the March 2018 quarter and mining activities are scheduled to commence in the December 2018 quarter. Meanwhile, GOR stock has risen 8.51% in three months as on January 18, 2018, and was up 4.6% on January 19, 2018. Given the on-track developments, we put a “Hold” on the stock at the current price of $0.80
 

OceanaGold Corporation

Production at Didipio will be lower in 2018: OceanaGold Corporation (ASX: OGC) has posted 2017 annual and fourth quarterly gold production of 574,606 ounces and 166,211 ounces, respectively. The annual copper production is of 18,351 tonnes and in the fourth quarter copper production is of 3,687 tonnes. Overall, the company has achieved its annual guidance. The company has reduced net debt to $167 million after the debt facility repayments of approximately $73 million in the fourth quarter. Moreover, in first quarter of 2018, OGC expects to commence the permitting process for mine life extensions at Waihi. The production at Didipio will be lower in 2018 compared to last year owing to mill feed being sourced from low grade stockpiles, and the company expects to return to stronger production in 2019 and beyond. While OGC stock was up 4.3% on January 19, 2018, the stock has fallen 13.87% in three months as on January 18, 2018. We give an “Expensive” recommendation on the stock at the current price of $3.39, in view of the near-term and medium-term shortfalls.
 

Unaudited 2017 Production and Cost Results’ Summary (Source: Company Reports)

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